In tomorrow's report, OIA will provide coverage on the June 5 trading action of major currencies.
July soybeans lost 1.25 cents and the November contract lost 4.50 on total volume of 141,417 contracts. Total open interest increased by 634 contracts, which relative to volume is approximately 75% below average. The July contract lost 7,088 of open interest. As this report is being compiled on June 5, July soybeans are trading 16.50 cents lower and November -13.00. In the report of June 2, we recommended that clients initiate long puts in the November 2014 contract, because we thought it was on the verge of generating a short-term sell signal. Although the sell signal has not been generated as of June 5, we think it is likely to occur tomorrow. The put position is profitable on June 5. Additionally, it appears likely that the July contract will soon generate a short-term sell signal. As we stated in the June 3 report: "In order for July soybeans to resume its uptrend, the daily low must be above OIA's key pivot point of $14.90 1/8". The July contract has not shown the strength to resume the uptrend, which would have likely resulted in new contract highs taking out the former contract high of 15.36 3/4 of May 22. Continue to hold long puts in the November 2014 contract.